Lyft (LYFT) CEO David Risher is spilling the beans on which customers are more generous when it comes to tipping the company’s drivers.
In a recent interview with Fortune on its “Leadership Next” podcast, Risher revealed that the ride-share company has seen a spike in tips from a certain group of concertgoers.
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“If you’re going to or from a Taylor Swift concert, you are much more likely to be a good tipper,” said Risher.
Taylor Swift fans apparently boosted local economies across the nation as they attended the artist’s Eras tour (which kicked off last year in March and ended in the U.S. in December) while they spent money on food, hotels, transportation, etc. The tour is the highest grossing tour of all time as it has generated over a billion dollars in gross revenue.
Risher also claimed that customers who are traveling to and from ice cream shops also give out hefty tips to drivers.
“If you’re going to an ice cream store in a Lyft, you will typically tip 20 to 30% higher than average,” said Rsher. “If you are leaving an ice cream store, you will tip 40 to 50% higher than average.”
Risher claims that “people’s behaviors” are “dependent on the mood they’re in,” which leads to better tipping.
Taylor Swift performs during “Taylor Swift | The Eras Tour” at the National Stadium on March 2, 2024 in Singapore.
Ashok Kumar/TAS24/Getty Images
“If they’re singing, you know, a Taylor Swift song, I guarantee you they’re in a pretty good mood and they’re more generous with their driver,” said Risher.
Tipping culture has been under scrutiny lately by consumers who are feeling the weight of a tight economy. Many consumers have been encountering an increasing number of pop-up screens on card machines that are used to pay for services at businesses, such as coffee establishments or fast-food restaurants, that request tips for employees.
For example, in 2022, Starbucks (SBUX) unveiled a new digital tipping system that encourages customers who pay for their order with a card to leave a tip in a set or custom amount.
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If customers wish to not leave a tip, they have to click the “No tip” button when making the transaction, which can be awkward for both the customer and the barista who is handling the order. The new system sparked outrage on social media from customers who claimed that they shouldn’t be pushed to tip the company’s employees.
According to a recent survey by WalletHub, about 3 in 4 Americans believe that tipping has gotten out of control. A total of 64% of people in the survey also think that a tip should be given when you feel like it and shouldn’t be required.
The poll also found that roughly 3 in 5 people believe that businesses are using customer tips to replace employee salaries.
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